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Is online trading of Share performing well in Nepal?

Online trading of share, once a myth, has finally got its shape in Nepal. Nepal Stock Exchange (NEPSE) attracted a lot of negative comments when it launched its application earlier in 2018. The system was full of bugs. Despite the continued pressure of the public, investor's association, broker's and various other concerned stakeholders, NEPSE was not able to give the proper answer but its creditworthy to mention that NEPSE was working on the background to improve its system.

NEPSE recently opened the facility of getting payment done online with their systems connected through Connect IPS. Connect IPS is a payment gateway promoted by Nepal Clearing House Limited. Like any other payment gateway, it acts as an intermediary between buyer, broker, and seller. For more detail about how integration with Connect IPS works, please go through the manual on the link below:
Click Here

On 13th June 2019, NEPSE published a data of broker wise online client list which shows total 8944 clients for 50 brokers. Considering the number of the demat accounts, approx. 1.2 million and the active investors in the market, approx 2 hundred thousand, online users are not significant. However, it is an encouraging sign to see investors trusting the technology and adapting to the changing investment environment.

Broker no. 57 has the highest number of online clients (954) followed by Broker no. 49 (743) and Broker no. 34 (728). Nearly 50% of the online clients is with 10 brokers. It might be a sign that these users are urban-based mostly in capital or major cities around the country.

NEPSE should work with other mobile money service provider to ensure that investors feel free to use the payment system of their liking and do not necessarily have to switch to ConnectIPS. And, of course, the online payment should be fully functioning with receiving money also integrated on it.

Important of all, NEPSE must conduct the public awareness campaign of how its online payment system will make the life of investors easier and make it one click away. It should be able to take advantage of the availability of internet connection throughout the country and able to reach to the potential investors and attract fresh money and perspective to the market.



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